President Donald Trump paid a rare visit to the Federal Reserve Board headquarters Thursday afternoon to confront Fed chair Jerome Powell over cost overruns related to a building renovation project that began in 2022.
Trump and other members of his administration have raised the cost overruns related to the Federal Reserve’s renovation — which topped $2.5 billion, above an expected cost of $1.9 billion — as proof of
Trump, who was joined on a tour of the ongoing construction project by Powell and Senate Banking Committee Chair Tim Scott, R-S.C., touted his visit ahead of time on social media and put the cost of the project at $3.1 billion.
During a press availability held at the construction site that was broadcast live, Trump reiterated that higher $3.1 billion price tag to Powell, who appeared surprised by the figure.
“So we’re taking a look, and it looks like it’s about $3.1 billion — it went up a little bit, or a lot,” Trump said as Powell shook his head. “So the $2.7 [billion] is now $3.1.”
“I’m not aware of that,” Powell interjected.
“Yeah, it just came out,” Trump responded, reaching into his pocket and retrieving a piece of paper.
“I just … I haven’t heard that from anybody at the Fed,” said a visibly perplexed Powell, reaching for his glasses as Trump handed him the paper. Scott, standing to Trump’s right, affirmed the new cost as “$3.1 or $3.2” billion.
“This came from us?” Powell asked, looking at the paper.
“Yes,” Trump said, pointing to the top. “I don’t know who does that.”
Powell studied the paper for a moment as Trump and Scott looked on.
“Oh, you’re including the Martin renovation,” Powell said, referring to a renovation project for the William McChesney Martin Federal Reserve office building, which began in 2015 and was completed in 2020. “You just added in a third building is what that is.”
“Well I know, but it’s a building that’s being built,” Trump said.
“No,” Powell said. “It was built five years ago. We finished Martin five years ago.”
“Yeah but it’s part of the overall, ah …” Trump said.
“But it’s not new,” Powell interjected.
“So we’re going to take a look, we’re going to see what’s happening, and it’s got a long way,” Trump continued before turning to Powell. “Do you expect any more cost overruns?”
“Don’t expect them,” Powell said. “But we’re ready for them. We have a little bit of a reserve we may use, but no, we don’t … We expect to be finished in 2027. We’re well along, as you can see.”
Trump then took questions, the first of which involving what he — in his experience as a real estate developer — would do with a project manager who had exceeded his budget. Trump said that “generally speaking” he would “fire ’em,” but when asked whether he had the power to fire Powell, Trump struck a softer tone.
“Well, I’m really just here with the chairman, he’s showing us around, showing us the work,” Trump said. “So I don’t want to get that … I don’t want to be personal. I just would like to see it get finished, and in many ways it’s too bad it started. But it did start. And it’s been under construction for a long time. It’s going to be a real long time, because it looks like it’s got a long way to go.”
Trump then was asked whether there was anything Powell could do to get Trump to “back off” his critiques, to which he replied, “Well I’d love him to lower interest rates! Other than that, what can I tell you?”